Section 77 - Borrowing from Fund when borrower has defaulted from financial obligation(a) The department, subject to the approval of the Director of Finance, may borrow funds from the Harbors and Watercraft Revolving Fund when a borrower has defaulted from any financial obligation and funds are required to protect the security interest of the department with respect to any loan made under Section 76.3.(b) The funds borrowed under this section shall be repaid within three years from the date of the approval of the Director of Finance. The repayment shall include the principal amount of the loan, plus interest equal to the rate of earnings of money deposited in the Surplus Money Investment Fund at the time the loan is approved by the Director of Finance.(c) A maximum of ten million dollars ($10,000,000) per year may be used for purposes of this section.(d) The borrowed funds may be used to do any of the following:(1) Pay any administrative and legal expenses incurred in connection with those defaults.(2) Acquire through negotiated purchase or bid at auction any property which serves as collateral for those defaulted loans.(3) Pay any costs of operating and maintaining a recreational marina acquired as a result of a failed loan, until the marina is sold.Ca. Harb. and Nav. Code § 77
Added by Stats. 1990, Ch. 1500, Sec. 3.